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Vitesse Semiconductor Corp. has been conducting itself in an illegal manner, with its founder, Louis Tomasetta, and its ex-chief financial officer, Eugene, residents of California, pleading guilty to conspiracy. The trial took place in NYC, and was a plea deal, by which the two skirted more serious charges. They were specifically charged with conspiring to destroy or falsify records regarding Vitesse’s April and October 2001 stock option grants, and this to dodge or disrupt an anticipated federal investigation.
Vitesse, which was founded in 1984 to create integrated circuits for electronics, has run afoul when working with investors, but the plea agreement says prosecutors will recommend mere probation for the duo “in light of the unique factual circumstances of this case,” as the Associated Press reported.
They specifically wished to alter company records in anticipation of the U.S. Securities and Exchange Commission – and such actions have already lead to a series of civil and criminal cases by U.S. enforcement agencies. Up till now, jurors have failed to reach a verdict, which is why Thursday’s plea deal is integral to the proceedings. Charges such as securities fraud and making false statements to auditors were therefore dropped.
The proceedings proceeded in federal court in Manhattan, where the pair admitted to the crime, and the sentencing is set for Nov. 4.
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